11:30AM U.S. stock averages traded in the negative ahead of Fed speeches.
U.S. stocks kept trading in the negative territory, reversing a course of recent gains. Rising oil prices weighed on the sentiment, along with a court ruling that Microsoft must pay $1.5 billion to Alcatel-Lucent to settle a patent dispute. Shares in Microsoft (MSFT: chart) slipped 1.3%, while Alcatel-Lucent (ALU: chart) advanced 1.6%. Higher oil prices hit shares of General Electric (GE: chart), United Technology (UTX: chart) and Caterpillar (CAT: chart). Other drags on the Dow were shares of J.P. Morgan Chase (JPM: chart) and IBM (IBM: chart), each down about 1%.

By sector, oil, gold and semiconductors posted strength, while banks, real-estate investment trusts and software declined. Bank of America (BAC: chart) dropped 1.6%. Shares of the largest U.S. bank Citigroup Inc. (C: chart) fell 0.6%. H&R Block (HRB: chart) gained 3.8%, as the tax preparation company swung to a Q3 loss on costs related to its mortgage business. Investors were also awaiting speeches by Federal Reserve officials later in the session.

On the earnings news front, Clear Channel Communications Inc. (CCU: chart), the nation's largest operator of radio stations, said its Q4 earnings tumbled 54% ahead of an $18.7 billion planned buyout by a group of private equity firms. Net income dropped to 43 cents per share, down from 86 cents per share a year earlier, beating estimates of 41 cents a share.

In late morning trading, the Dow Jones industrial average was down 36.77, or 0.29%, at 12,649.25. The Standard & Poor's 500 index was down 5.38, or 0.37%, at 1,451.00, and the Nasdaq was down 8.46, or 0.34%, at 2,516.48. Bonds rose, rebounding from weakness Thursday and following completion of a five-year note auction Thursday. The yield on the benchmark 10-year Treasury note falling to 4.68% from 4.73% late Thursday.


9:45AM U.S. stocks opened lower, dragged by technology stocks.
U.S. stock averages started trading slightly lower on Friday, weighed down by a notable advance in crude oil prices. Tech stocks came under pressure on news of a patent ruling against Microsoft Corp. BEA Systems Inc. (BEAS: chart) was a notable decliner, falling 7% after the business-software developer released Q1 revenue forecast below analyst estimates. Other decliners included Dell Inc. (DELL: chart), Intel Corp. (INTC: chart) and Microsoft Corp. (MSFT: chart), each down about 1%.

Energy stocks advanced on the back of rising oil prices. Chesapeake Energy Corp. (CHK: chart) climbed 2.7% after reporting stronger-than-expected Q4 earnings. The retail sector was boosted by gains for Lowe''s Cos. (LOW: chart). Shares of the home-improvement retailer jumped 6% on better-than-expected Q4 results and an upbeat forecast. Shares of network-equipment suppliers traded mixed Alcatel-Lucent (ALU: chart) rising 1% after it won a patent dispute with Microsoft. Among other telecom stocks, Alltel Corp. (AT: chart) dropped 1%, while Ericsson LM (ERIC: chart) gained 1%. Tekelec (TKLC: chart) shares fell 7.3% after the maker of telecommunications signaling devices reported a Q4 net loss of 2 cents a share, vs. a net loss of 72 cents a share last year, missing expectations of a profit of 3 cents. In the first hour of trading, the Dow Jones industrial average was down 32.05, or 0.25 percent, at 12,653.97. The Standard & Poor''s 500 index was down 2.59, or 0.18%, at 1,453.79, and the Nasdaq was down 6.74, or 0.27%, at 2,518.20. Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.70% from 4.73 percent late Thursday.


9:30AM FTSE 100 edges lower as Lloyds TSB and Rolls Royce drag stocks down.
The UK market was lower on Friday. By mid-day, the FTSE 100 had recovered some of its poise and was trading 10 points lower at 6370.2.

Advancers

Mining companies gained, following higher metals prices on commodities markets. Xstrata was 2.2% higher, Anglo American rose 1.3% and Rio Tinto gained 1.1%.

Oil stocks also advanced as the crude price breached $61 a barrel on a continued threat of conflict with Iran over its nuclear ambitions. BP rose 1.7% and Royal Dutch Shell was 0.6% higher.

Advertising company WPP added 1.3% as it announced its annual profits and revenues topped forecasts. Earnings before interest, taxation, depreciation and amortisation came in at just over 1 billion pounds for the first time.

Drax Group, the power generator, rose 2.6% on private equity bid talk, while Tate & Lyle added 0.1% as reports circulate it could be close to a deal to sell its European starch division.

Decliners

Lloyds TSB declined despite posting another strong performance in 2006. It saw growth in all its divisions and said it envisaged double-digit profit growth in the future. Profit before tax increased 11% to 4.24 billion pounds on interest and similar income that rose to 14.3 billion pounds from 12.5 billion pounds last year. Lloyds insurer and re-insurer Advent Capital dipped although it swung back into profit for the full year. Shares were 1.6% lower.

Shares in Rolls-Royce fell after broker UBS cut its recommendation on the stock to reduce from neutral. The broker cited concern about increased competition from rival Pratt & Whitney.


9:00 AM Market futures pointed to a lower opening on rising oil prices.
U.S. stock futures declined on Friday, pressured by recovering oil prices and patent concerns dragging down software giant Microsoft (MSFT: chart). Shares of the software maker slipped 0.5% in pre-open trade following a court ruling that it owned Alcatel-Lucent (ALU: chart) $1.52 billion over a dispute on MP3 music-related patents. In earnings news, Lowe’s Cos (LOW: chart) said its Q4 profit fell to $613 million, or 40 cents a share, from $693 million, or 43 cents a share last year, beating estimates of 37 cents a share. Net sales slipped to $10.41 billion from $10.81 billion. The company said that same-store sales fell 5.3%. For Q1, Lowe''s forecast a total sales increase of 5% to 6%, a same-store sales decline of 2% to 4%, and earnings of 49 cents to 51 cents a share.

Among other pre-market highlights, Ituit (INTU: chart), tax software firm, reported lower quarterly profit. It also agreed to sell its outsourced-payroll business. Tax preparer H&R Block (HRP: chart) said it swung to a loss in Q3, citing costs related to its mortgage business. S&P 500 futures eased 1.1 points at 1,458.10 and Nasdaq 100 futures dropped 2.75 points at 1,851.50. Dow industrial futures dropped 7 points.